AlphaGraphics Franchise Costs $285K – $369K (+ 2024 Profits)

AlphaGraphics, founded in 1970, embarked on its franchising journey in 1979. Headquartered in Lakewood, Colorado, the company initially set the stage as the first desktop publishing retailer and quickly expanded its footprint both domestically and internationally. 

AlphaGraphics distinguishes itself in the print and marketing industry through a robust B2B (business-to-business) model that emphasizes community impact and professional environments, boasting some of the highest per-location financial results in the industry. 

The franchise’s offerings encompass a wide range of services, from traditional printing to digital marketing, including custom signs, large format printing, canvas prints, business cards, vehicle wraps, and vinyl banners. Moreover, AlphaGraphics is part of MBE Worldwide, a global network with thousands of locations across 53 countries.

Type of Expenditure	Amount
Initial Franchise Fee	$49,000
Opening/Reopening Performance Package	$10,000
Center Development Package	$146,565
MIS System (PrintSmith® Vision)	$15,000
CRM System (Print Speak®)	$250
agOnline System	$1,500
Real Estate & Leasehold Improvements and Construction	$10,000 – $40,000
Digital Printing Equipment	$0 – $4,000
Finance Costs	$0 – $17,000
Miscellaneous Opening Costs	$600 – $6,800
Travel and Expense for Training	$2,500 – $5,000
Additional Funds – 12 months	$50,000 – $74,000
Total	$285,000 – $369,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

The Initial Franchise Fee varies but typically includes amounts such as $48,950 or $25,000 for conversion franchisees, payable when you sign the Franchise Agreement. This fee is non-refundable.

Royalty Fee

The royalty fee for AlphaGraphics indeed starts at 7% of gross sales, but it can be reduced based on the gross sales volume achieved by the franchise. The royalty rate is reduced as follows:

1. 7% of Gross Sales: This is the starting rate.
2. 5% of Gross Sales: This reduced rate applies after certain sales thresholds are met.
3. 3% of Gross Sales: This further reduced rate applies when even higher sales thresholds are met during the Royalty Year.

Marketing/Advertising Fee

The AlphaGraphics Integrated Marketing Fee (AIM Fees) is ongoing and amounts to 2½% of the Franchised Business Center’s Gross Sales. There is a cap of $16,700 per year for the first Franchised Business Center and $8,300 per year for each additional center.

Technology Fee

Fees for technology systems like the MIS System (PrintSmith Vision), CRM System (Print Speak), and agOnline System are also included, with costs such as $15,000 for the MIS System, $250 – $750 for the CRM System, and $1,500 for the agOnline System.

Transfer Fees

Transfer Fees vary depending on several factors including your relationship to the transferee. The fee can be as much as $24,475 or reduced to $14,400 in certain conditions.

Franchise pros and cons

The Pros:

• Third-party financing: The franchisor provides its franchisees with third-party financing for startup costs, franchise fees, equipment, inventory and payroll.
• Exclusive territory protection: AlphaGraphics allows franchisees to operate in a protected location. It does not grant any other franchise or operate a related business in the protected area.
• Pre-opening training and support: The franchisor offers its franchisees 40 hours of on-the-job training and a 75-hour classroom training program. It trains them about its business concept, customer service, hiring and training staff and how to successfully launch their centers.
• Marketing and public relations: AlphaGraphics provides its franchisees with result-oriented marketing and advertising channels to help them attract customers and register high retention rates. These include national media, regional advertising, social media, email marketing, local store promotional campaigns and loyalty program apps.
• Site selection and lease negotiation: The franchisor offers its franchisees site selection assistance to help them identify a suitable location. It helps them with the designs, lease negotiations and construction of their centers.
• Multiple pathways: The franchisor offers its franchisees a flexible concept of converting their existing print business into AlphaGraphics without losing their existing target customers, which enables them to grow into multiple units.

The cons:

• No absentee ownership: The franchise does not present passive investment opportunities. The franchisees must be involved in the decision-making and day-to-day operations of their centers.
• Not a part-time business: The franchisees are required to open their stores full-time for at least 40 hours per week.
• Not a home-based business: AlphaGraphics franchises cannot be operated from home or a mobile unit. Franchisees must have an office space, retail facility or warehouse to operate from.

How to open a AlphaGraphics franchise

Opening a AlphaGraphics franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a AlphaGraphics franchise.

1: Initial Inquiry and Discovery

• Explore the Opportunity: Research AlphaGraphics as a franchise opportunity and understand the business model, services, and potential markets.
• Contact AlphaGraphics: Express your interest through their official franchise website or via a direct call to their corporate office.

2: Participate in Webinars and Review Brand Information

• Attend Informational Webinars: Participate in scheduled webinars to gain more insights into the AlphaGraphics brand, its operations, and franchisee expectations.
• Receive Detailed Brand Information: Obtain and review detailed documentation provided by AlphaGraphics, including the franchisee operations manual and other informational resources.

3: Submit a Confidential Application

• Complete Application: Fill out and submit the confidential application to provide AlphaGraphics with your business background, goals, and financial capability.
• Review of Application: AlphaGraphics will review your application to assess your suitability and potential as a franchisee.

4: Review Franchise Disclosure Document (FDD)

• Receive and Review FDD: Upon successful preliminary approval, you will receive the Franchise Disclosure Document which contains important legal and financial information.
• Understand Your Commitment: Review the FDD carefully to understand your rights, obligations, financial commitments, and the support you will receive from AlphaGraphics.

5: Validation Process with Existing Franchisees

• Speak with Current Franchisees: Engage in discussions with current franchise owners to get firsthand accounts of the business operations, challenges, and successes.
• Gain Practical Insights: These conversations provide valuable insights into the day-to-day operations and the overall franchise experience.

6: Discovery Day

• Visit Corporate Headquarters: Attend a Discovery Day at AlphaGraphics’ headquarters in Lakewood, Colorado, where you will meet the executive team and receive a comprehensive tour.
• Evaluate Fit and Alignment: This visit is crucial for both parties to assess compatibility and mutual expectations.

7: Franchise Approval and Agreement

• Receive Franchise Approval: If both parties agree to proceed, AlphaGraphics will extend a formal franchise offer.
• Sign Franchise Agreement: Once the agreement is reviewed and all legalities are settled, sign the franchise agreement to officially become an AlphaGraphics franchisee.

8: Training and Onboarding

• Undergo Training: Participate in extensive training programs covering all aspects of running the franchise, including operational procedures, marketing strategies, and financial management.
• Prepare for Opening: Receive assistance in site selection, setup, and preparation for the grand opening.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

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